The Other Side Of The Coin

Most of the people you see interviewed on BNN.ca are advocating resource stocks with dividend yields. I would advocate the same, since share prices have not followed the gold rush in many cases.

But the majors rallied smartly, as have the intermediates in recent months, regardless of the direction of the bond markets. Some of the mining juniors with gold production and cautiously managed floats have also rallied. Some of the beaten down mining juniors have already begun to rally.

So let's say there's still some life in GBN.V stock, even though we're prepared to send this stinking nag off to the glue factory. A really good article from Casey Research on gold stock gains during the inflationary mania of the 70's gives you an idea.

Serious exploration dollars and capital investment only went into the La Ronge gold belt much after the gold mania of the 1970's ended. The La Ronge gold belt had already seen its staking rush and small discoveries, including the startup of long-term miner Claude Resources(CRJ.TO).

Depression era mines technically did not provide the same returns, but did provide very robust dividends throughout the period. The data is simply not available from the times to make a clear assessment.

Unmined deposits with robust grades and very low processing rates, and the direct beneficiaries of exploration and discoveries in Ontario as far back as 1908. (The present day would have you invest in mined out projects.) I would surmise that the La Ronge gold belt is coming into its own in a similar manner, some twenty five years after a rash of discoveries.

http://www.safehaven.com/article/23464/what-to-the-moon-will-look-like

-F6